Bitcoin Surges Above $29.9K as MicroStrategy Announces BTC Buying Strategy; ADA and SOL Rally

Bitcoin's early gains were erased as the dollar index and Treasury yields recovered after Fitch downgraded the U.S. sovereign credit rating. The leading cryptocurrency reversed its gains and traded at $29,600, down from a high of $30,032. Bitcoin tends to move inversely to the dollar and bond yields. The S&P downgraded the U.S. in 2011, causing stocks to tumble and bitcoin to fall over 38%. The dollar index is expected to rise further, potentially causing more pain for bitcoin and stocks. However, MicroStrategy's plans to raise funds to buy more bitcoin may provide support. Other cryptocurrencies like Ether and CRV also experienced a negative turnaround.